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M.C.Amritsar vs Sh.Sekar
2024 Latest Caselaw 8670 P&H

Citation : 2024 Latest Caselaw 8670 P&H
Judgement Date : 24 April, 2024

Punjab-Haryana High Court

M.C.Amritsar vs Sh.Sekar on 24 April, 2024

                                       Neutral Citation No:=2024:PHHC:055852
                                                                 2024:PHHC:055852


             IN THE HIGH COURT OF PUNJAB & HARYANA
                         AT CHANDIGARH
129
                                       RSA-1962-1992 (O&M)
                                       Date of decision: 24.04.2024

M.C. Amritsar                                                       ...Appellant
                                   VERSUS
Shri Sekar                                                          ...Respondent

CORAM : HON'BLE MR. JUSTICE VINOD S. BHARDWAJ

Present :-    Mr. Karanjit Singh, Advocate for the appellant.

              Respondent- ex-parte.
                              *****

VINOD S. BHARDWAJ, J. (Oral)

1. The defendant-Municipal Corporation, Amritsar, is in appeal

against the judgment and decree passed by the Subordinate Judge 1st Class,

Amritsar, in Civil Suit No.123 of 1984 decided vide judgment dated

04.12.1987 allowing the suit filed by respondent-plaintiff as well as against

the subsequent dismissal of Civil Appeal No. 06 of 1988 by the Additional

District Judge, Amritsar, vide his judgment dated 24.03.1990.

2. Since no one entered appearance on behalf of respondent-

plaintiff despite service by way of proclamation, he is ordered to be

proceeded against ex-parte.

3. Brief facts of the case are that the respondent-plaintiff was

driver of truck No.TDL-888 and he had come to Amritsar on 26.09.1984 to

bring two auto clave vessels from M/s. Ralluonu Company, Bombay for M/s

Amritsar Oil Works, Amritsar. It is stated that when he reached Amritsar, it

was dark and in the absence of any signal at the Octroi Post, he crossed the

said post without payment of the Octroi charges. He was hauled at a distance

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129 RSA-1962-1992 (O&M)

of about three Kms of the Octroi Post and all the papers including the bill,

G.R./R.C. etc. were taken into possession and the truck was impounded.

Even though he informed the officials that the same occurred as a result of

his ignorance and failure to notice Octroi being new to the city, the same

was of no use. The officials of the appellant-Corporation insisted for

payment of penalty to the extent of 20 times of the Octroi Charge. The said

penalty was challenged by the respondent-plaintiff by institution of the

present suit for mandatory injunction averring that the action was illegal and

unsustainable.

4. The appellant-defendant/Municipal Corporation entered

appearance and filed its response specifically to the effect that the suit was

not maintainable as the penalty had been levied on the basis of application

submitted by the respondent-plaintiff seeking compounding of the offence

after payment of actual Octroi tax and composition charges in terms of

provisions of Section 396 of the Punjab Municipal Corporation Act, 1976. It

was averred that the levy being as per law, the suit was liable to be

dismissed.

5. On completion of pleading issues were framed and evidence

were led by the parties. On consideration of the evidence, the Sub-Judge 1st

Class, Amritsar, recorded a finding that it could not be established that the

respondent-plaintiff was conversant with Urdu and that he was made to

understand the contents of the application on the basis whereof the statement

of DW-1 could be relied upon or it could be accepted that compounding was

requested by the plaintiff. It was held that the issue of composition did not

arise in the said case and that the matter could only be decided with by the

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Neutral Citation No:=2024:PHHC:055852

129 RSA-1962-1992 (O&M)

Court since the authority was not authorized to do the same.

6. The suit of the respondent-plaintiff was accordingly decreed

and it was held that the notice dated 26.09.1984 served by the appellant-

Municipal Corporation claiming 20 times penalty of the actual Octroi duty

as penalty was illegal and it directed immediate release of the goods, truck

as well as the papers including the bill, invoices etc. pertaining to the goods.

The said order was without prejudice to the rights of the appellant to

prosecute the respondent-plaintiff under Section 116 of the Punjab

Municipal Corporation Act, 1976.

7. Aggrieved thereof an appeal was filed by the appellant before

the District Judge, Amritsar, bearing Civil Appeal No.6 of 1988. On

consideration of the appeal, the Additional District Judge, Amritsar,

dismissed the same and affirmed the judgment dated 04.12.1987 of Sub-

Judge 1st Class, Amritsar, vide judgment dated 24.03.1990. Aggrieved

thereof, the present second appeal has been filed.

8. Learned counsel for the appellant has reiterated that no penalty

was levied upon the respondent-plaintiff and the composition money was

being demanded on an application submitted by the respondent-plaintiff

seeking compounding of the offence.

9. I have heard the learned counsel appearing on behalf of the

appellant and have gone through the judgments passed by the learned

Additional District Judge, Amritsar.

10. While dealing with the arguments raised by the appellant on

issue nos. 1 and 5, the Additional District Judge, has observed as under:

" 7. The learned counsel for the appellant has argued that

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129 RSA-1962-1992 (O&M)

Rs. 18,000/- has been imposed as a composition money and

not as a penalty and the Commissioner, Municipal

Corporation, Amritsar has no right to compound the same

under Section 394(b) of the Act. He pointed out that on

26.9.1984 Sekhar made an application Ex. D1 for

compounding the same and vide endorsement Ex. DY, Rs.

18000/- was imposed as a composition fee. So the findings of

the trial court on issues No. 1 and 5 are incorrect and he

referred to M/s Parkash Road Lines Vs. Union of India, AIR

1989 S.C. 1962.

8. The counsel for the respondent argued that the case in

hand cannot be covered under Section 394 (b) of the Act and

the application had been made for compounding the same.

The appellant should have informed the respondent that it

was going to impose Rs.18000/- as a composition fee and then

it should have got a statement from the respondent that he

accepted the imposition of the composition fee. One sided

imposition of composition fee cannot be held to be legal and

he referred to 1985 Municipal Committees and Corporation

Cases 118, Brij Mohan Vs. Municipal Corporation, Amritsar

and others.

9. It has been observed by Hon'ble Mr. Justice S. P. Goyal

in Brij Mohan Vs. Municipal Corporation(supra) that

"moreover, even the provisions of this section don't entitle the

Commissioner unilaterally to determine and impose

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129 RSA-1962-1992 (O&M)

composition fee. By virtue of the provisions of Section 394-B

the Commissioner and the other Officers mentioned therein

have been authorised to compound the offence relating to the

Act but this provision no where authorise them to determine

composition fee unilaterally which could bind the offender".

As such it is apparent that the composition fee unilaterally

imposed and there is no acceptance of the same by the

respondent-plaintiff. As such the findings of the trial court on

issues No. 1 and 5 are correct and the same stand affirmed.

10. No arguments on any other issue have been addressed

before me. But I have gone through the record and finding of

the trial court on the remaining issues are correct and the

same also stand affirmed.".

11. It is evident from a perusal of the above that as per the

judgment in the matter of 'Brij Mohan Vs. Municipal Corporation,

Amritsar and other', relied by the Additional Sessions Judge, Amritsar, the

Commissioner did not have any power to determine and impose any

composition fee and that the said aspect could only be dealt by a Court.

Further, it was also noticed that the respondent-plaintiff was incapable of

understanding the documents on which his signatures/impressions were

obtained.

12. The factual aspects have already been noticed by both the

Courts and finding has been returned against the appellant-Municipal

Corporation. No judgment or law has been cited by the counsel for the

appellant on the basis whereof the said findings, concurrently recorded by

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129 RSA-1962-1992 (O&M)

both the Courts, can be said to be unsustainable and liable to be set aside

being misplaced or based on mis-interpretation.

13. Finding no substantial question of law or any illegality,

perversity or impropriety in the judgments concurrently passed by both the

Courts, I find that the present appeal deserves dismissal.

14. Ordered accordingly.



                                                 (VINOD S. BHARDWAJ)
24.04.2024                                               JUDGE
Mangal Singh

         Whether speaking/reasoned :     Yes/No
         Whether reportable        :     Yes/No




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